Grow Wealth: Use Your IRA or 401(k) to Invest in Real Estate

Self-Directed IRAs vs. Solo 401(k)s: Choose the Best Path to Passive Wealth

Are you looking to diversify your retirement portfolio and build passive income? Multifamily real estate can be a game-changer, offering stability, consistent returns, and growth potential. Many investors don’t realize they can use retirement accounts like Self-Directed IRAs (SDIRAs) and Solo 401(k)s to unlock these opportunities.

At Missional Capital Group, we empower investors to make informed decisions that align with their financial goals. Let’s explore the key differences and benefits of these powerful retirement tools:

Self-Directed IRAs

• What is it? A traditional or Roth IRA with expanded investment options, including real estate.

• Who is it for? Ideal for those who don’t have self-employment income.

• Benefits:

• Diversification into alternative assets like multifamily properties.

• Potential tax advantages (tax-deferred growth or tax-free withdrawals for Roth accounts).

• Easy to set up and use for passive investments.

• Considerations:

• Subject to unrelated business income tax (UBIT) if leveraged funds are used.

• Prohibited transaction rules must be carefully followed.

Solo 401(k)s

• What is it? A retirement plan designed for self-employed individuals or small business owners with no full-time employees.

• Who is it for? Perfect for entrepreneurs and gig workers.

• Benefits:

• Higher contribution limits compared to IRAs (up to $66,000 in 2024 for individuals under 50).

• The ability to borrow up to $50,000 from the plan.

• Exemption from UBIT on leveraged real estate deals.

• Considerations:

• Requires self-employment income to qualify.

• A bit more complex to set up and administer.

Which One Should You Choose?

Your choice depends on your employment status, contribution goals, and desired tax strategy. Both options allow you to harness the potential of multifamily real estate while maintaining control of your retirement funds.

Why Multifamily Real Estate?

Investing passively in multifamily real estate offers:

• Stable cash flow.

• Long-term appreciation.

• A hedge against inflation.

• Tax-efficient income streams.

Our current opportunities at Missional Capital Group are designed to maximize returns while minimizing risk, making them a perfect fit for cashflow-focused investors.

Take the Next Step

If you’re ready to explore how you can use your Self-Directed IRA or Solo 401(k) to invest in multifamily real estate, our team is here to guide you every step of the way.

👉 Schedule a Call with Us Today

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Let’s build a better financial future—together.

Missional Capital Group